The 23-year-old resort is situated on 37 acres of oceanfront onMaui's northwest coast. The hotel includes 25,000 sf of indoormeeting and banquet space, 100,000 sf of outdoor function space,two spacious pool decks and the 9,000-sf Spa Moana, which HostMarriott touts as the only oceanfront full-service spa inHawaii.

Host Marriott says the resort is the most prominent hotel inKaanapali and the RevPAR leader. The purchase price, a 20% discountto replacement cost, is 9.7 times the hotel's forecasted 2003EBITDA (Earnings Before Interest Expense, Taxes, Depreciation,Amortization) of $33 million, which breaks down to $23 million inforecasted GAAP operating profit plus depreciation expense of $10million.

Host Marriott president/CEO Christopher Nassetta says Maui hasextremely high barriers to entry for new supply. "In fact, supplyhas actually declined due to recent conversions to timeshare," saysNasetta. "As a result, we believe there is meaningful upsidepotential over the next several years."

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